Svmuu News: KPMG today released its latest “Hong Kong Asset Management and Private Equity Outlook” report, noting that reforms to Hong Kong’s tax-exempt fund regime and tax relief system for ancillary benefits are expected to attract a new wave of regional and global asset management firms to establish a presence in Hong Kong. Under the new system, eligible carry and performance fees will be subject to an effective tax rate of 0%, whether at the corporate level or for individual employees based in Hong Kong.
Data shows that Hong Kong’s assets under management (AUM) grew by 20% year-over-year in 2025 to a record high, while net fund inflows surged 193% year-over-year, reaching approximately three times last year’s level. KPMG forecasts that Hong Kong’s annual IPO fundraising is expected to reach approximately HK$350 billion, and the ETF market will continue to expand as investor demand extends to products such as virtual assets and tactical trades. (KPMG)